Blue Ships Ltd (BSL) owned a vessel (Blue Whale) which is chartered to Black Eagle Co (BEC). They agreed to the Standard Boat Charter clauses which contents required BEC to ensure insurance covered for war and marine risk, protection and indemnity risk. BEC time-chartered the vessel to Malayan National Shipping Ltd (MNSL), who chartered the vessel to a charterer, Bunga Biru Laut SB (Bunga). MNSL and Bunga singed a time-chartered agreement. There is an undertaking to trade the vessel between safe ports is included in each charterparty. Bunga ordered the vessel to Tanjung Ru to load a cargo of iron ore for carriage to Gwadar Port in Pakistan. The port can only be entered by a fairway. The fairway characteristics itself as a navigator causes danger to the vessel. However, for 50 years there is no casualty occurs. On 23" October 2022, due to storm and bad weather causes by the monsoon, the vessel allied with the northern end of the fairway whilst leaving the port. The vessel grounded. After a while, another vessel (Jambo) was grounded While attempting to leave the port. Rescuers were sent, unfortunately the vessel (Blue Whale) could not be saved and broke in two. Subsequently, the vessel (Blue Whale) wreck was removed in a very long wreck removal operation. After 2 months, the hull insurers, Marine & Insurance Ltd (MIL) start to do investigation on the claim of total lost and grounding of the vessel. MIL acted as the assignee of BSL and BEC. MIL brough a claim as the insurer against MNSL who passed on to Bunga for damages for breach of the charterer's undertaking to trade only between safe ports. QuestionDiscuss the issues arising from the given fact and decide what would be the decision of the court? According to FOB,Free On Board to answer.

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Based on the given facts several issues arise regarding the grounding and subsequent total loss of the vessel Blue Whale and the claim brought by the ... View the full answer